Help - Relationship over. Can you remortgage to buy another home to live in yourself?

Plate_Spinner

Hello all I'm after some advice please. I have found out my partner has been cheating on me with someone for a long time. We have been together 15+ years and in our mid 40s. We are not married and have two young children together. We live in England. We have a joint mortgage on our house which we bought together. We are both named on the deeds. We've had lots of discussions and have both agreed our relationship is over so I have no choice but to leave our home, as hard as that will be for me leaving my children.

We have come up with a plan but don't know if we can do this, hence me asking on here.

We have a lot of equity in our house, our mortgage balance is only around £35,000 and the house is worth around £500,000.

To save selling the family home and uprooting the children from school I want to extend our mortgage as long as it can go (around 20 years) and bring that mortgage payment down to around £160 a month which she will then be able to afford by herself. We have then thought of using the equity in the house to buy someone else for me to live, to save me renting.

If we sold the house we would have a nice sum of money each but neither of us could afford to buy anything, she only works part time, We live in a nice area so property prices aren't cheap so I don't want us moving to different areas as I need to be close to my children. We also want our children to inherit a home so we don't want to sell our only asset.

So is it possible for me to remortgage our home and use that money to buy somewhere for me to live in? The mortgage payment wouldn't be far off what I would be paying in rent so at least if I buy something it isn't dead money every month and we would have a second property for our children to inherit.

Any advice would be most appreciated, thank you.

tacpot12

You might need to discuss your options with a Mortgage Broker. A good broker will know if there is any way to achieve what you want, and which companies are likely to accept the deal. You might also call your existing mortgage company to see if they can help. It would be worth ruling them out, before speaking to a broker.

foxy-stoat

If the soon to be ex can pay the mortgage on the current property with paying you out half of the equity so you can buy yourself another place then all good.

If you need to continue to be named on the current mortgage & deeds then I can see issues in the future - not to mention cost you more in second property stamp duty.

Plate_Spinner

foxy-stoat wrote: »

If the soon to be ex can pay the mortgage on the current property with paying you out half of the equity so you can buy yourself another place then all good.

If you need to continue to be named on the current mortgage & deeds then I can see issues in the future - not to mention cost you more in second property stamp duty.

She could afford to pay the current mortgage by herself if we extend the term, she couldn't afford to buy me out though. So in theory there is no issue remortgaging and buying someone else for me to live in?

foxy-stoat

No, you would transfer the equity to her and be removed from the mortgage and deeds and you would get a chunk of money to buy somewhere else to live.

Plate_Spinner

foxy-stoat wrote: »

No, you would transfer the equity to her and be removed from the mortgage and deeds and you would get a chunk of money to buy somewhere else to live.

But wouldn't her mortgage payments go up?

ViolaLass

Plate_Spinner wrote: »

She could afford to pay the current mortgage by herself if we extend the term, she couldn't afford to buy me out though. So in theory there is no issue remortgaging and buying someone else for me to live in?

If you're extending the mortgage term but not borrowing more, where will the money for you to buy somewhere else come from?

If you are borrowing more then how will your ex pay for it? Or are you going to pay for it?

Plate_Spinner

ViolaLass wrote: »

If you're extending the mortgage term but not borrowing more, where will the money for you to buy somewhere else come from?

If you are borrowing more then how will your ex pay for it? Or are you going to pay for it?

Maybe I'm understanding how it works, wouldn't a new mortgage be treated as separate to the original mortgage, so there would run on different terms and interest rates?

I planned to extend the current mortgage and she takes those payments over as they would be easily affordable for her and then I would pay the other mortgage in full so I could buy somewhere. I know this doesn't sound easy but neither of us want to uproot the children or sell what we always planned to be their inheritance.

Thrugelmir

Plate_Spinner wrote: »

Maybe I'm understanding how it works, wouldn't a new mortgage be treated as separate to the original mortgage, so there would run on different terms and interest rates?

Primary lenders will require 1st charge on the property to secure the mortgage advance. In all honesty you are better off selling the property and solving the issue in a different manner. Too many pitfalls lie ahead with your are proposing to do. As difficult as the choices maybe.

poppy10_2

You need to cut your financial ties with her as far as possible (taking into account that you have kids together).
Sell the property and move on

ViolaLass

Plate_Spinner wrote: »

Maybe I'm understanding how it works, wouldn't a new mortgage be treated as separate to the original mortgage, so there would run on different terms and interest rates? Yes, but a lender won't like having the second charge on a house rather than the first one. Plus you'll pay more in stamp duty.

I planned to extend the current mortgage and she takes those payments over as they would be easily affordable for her and then I would pay the other mortgage in full so I could buy somewhere. I know this doesn't sound easy but neither of us want to uproot the children or sell what we always planned to be their inheritance.

It's not their inheritance yet, it's everyone's place to live. Besides, if you did sell it, you'd still have the money and they could (eventually) inherit now.

Anyway, I'd focus on their needs now and for the next few years, before you worry about inheritance. Spending more on stamp duty, for example, will involve 'spending their inheritance'.